This week the Mail Online released an article, revealing that football players shirt sales do not necessarily cover their own transfer fees. They advise that there is no doubt that the signing of a superstar player will boost sales however it will not necessarily cover their enormous transfer fees.
Our Sports Lawyer, David Seligman was asked for, to comment, he said:
‘The club have intellectual property rights, such as their badge, and the name and they have the rights to players’ names on the back of the shirts. They license that off to Nike, adidas, Puma, New Balance and the like.
‘What tends to happen is that the license gets bought for X number of millions of pounds, and royalties are paid once a certain threshold of shirt sales have passed. If you’re Man Utd, and your brand is worth fortunes, you can command millions of pounds up front and a higher percentage of future sales. However, even that higher percentage is not the most significant proportion of the money earned for each kit sale.
David, then continued.
‘I would say probably not much more than 20 per cent. Obviously a lot depends on what flat fee you get at the start. It might not be 20 per cent of all shirt sales, it might be above a certain threshold.’
The Mail online concluded that: While the kit sales myth has truly been busted, there can be financial positives for clubs when they do sign a big name. Just don’t expect their transfer fee to be held in the cash register in the club shop.
To read the full article, please visit the this link, here.
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